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Pakistan, China Sign MoU on Energy Cooperation
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Pakistan said on Friday that a Memorandum of Understanding (MoU) for energy cooperation between Pakistan and China was aimed at initiating studies to build an energy corridor for China to access the oil and gas resources of the Central and Western Asia.

 

The MoU signed on April 27 also aimed to develop oil refining and storages in the coastal areas of Pakistan, a foreign office statement said.

 

The statement said that the agreement would also accelerate oil and gas exploration activity in Pakistan.

 

"It will exploit Pakistan's coal and lignite resources for increasing domestic energy supplies and for power generation though cleaner coal technologies," it said.

 

The MoU would promote development of renewable energy resources and capacity building in hydrocarbon research and development, according to the statement.

 

The agreement would encourage private sectors as well as financial institutions of both countries to participate in the energy cooperation for realizing joint venture and investments, the statement said.

 

It said that the Pakistan-China Energy Forum held in Islamabad (April 25-27) was a significant milestone in identifying and enhancing areas of mutual cooperation in the energy sector.

 

It also reflected the time tested and multi-facetted relationship between Pakistan and China, the statement said.

 

(Xinhua News Agency April 29, 2006)

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